Aadhar Housing Finance (AADHARHFC) Q1 25/26 earnings summary

Executive summary

• AUM rose 22% year-over-year to INR 26,524 crore (INR 265.2bn), with disbursements up 32% to INR 1,979 crore (INR 19.8bn), and PAT increasing 19% to INR 237 crore (INR 2.37bn) for Q1 FY26, reinforcing leadership in affordable housing finance.

• The company operates 591 branches across 22 states, serving over 300,000 customers, with a focus on underserved regions and a 100% secured retail loan book.

• Technology and analytics, including AI/ML and digital onboarding, are central to operations, driving efficiency and governance.

• Received multiple awards and recognitions, including NBFC of the Year under PMAY, NHB Excellence Award for Product Innovation, and a CARE rating upgrade to AA+.

• Net worth reached INR 6,616 crore, bolstered by IPO proceeds, and the company completed a successful IPO in May 2024.

Financial highlights

• Standalone total income for Q1 FY26 was INR 85,128 lakh, with PAT at INR 23,730 lakh, both up year-over-year.

• NIM for Q1 FY26 was 8.8%; ROA at 4.0%; ROE at 15.9%; cost-to-income ratio improved to 34.8%-36.1% year-over-year.

• Gross NPA stable at 1.34% (vs. 1.31% last year), with collection efficiency above 98%.

• Capital adequacy ratio at 44.1%-44.61% as of June 30, 2025; net worth at INR 66bn.

• Basic EPS for Q1 FY26 stood at 5.4-5.50.

Outlook and guidance

• Growth guidance maintained at 20%-22% AUM and 18%-20% disbursement for FY 2026, with management optimistic about affordable housing growth.

• Credit costs expected at 25-27 basis points for the year, with seasonality impacting Q1.

• ROA targeted at 4.2%-4.3% for FY 2026; aspirational ROE at 17%-18% over the long term.

• Plan to add 50-60 branches annually for the next three years, focusing on emerging locations.